The recent downturn has taken AP Moller Maersk shares close to a medium term support level around 11255 DKK. The timing for a long trade in the stock appears good.
Summary
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● The company is in a robust financial situation considering its net cash and margin position.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 3.7 for the 2023 fiscal year.
● The company's share price in relation to its net book value makes it look relatively cheap.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● Over the past four months, analysts' average price target has been revised downwards significantly.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● Over the past twelve months, analysts' opinions have been revised negatively.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
● The company's earnings releases usually do not meet expectations.
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A.P. Møller - Mærsk A/S is the world's leading maritime transport company. The group's activity is organized around two sectors:
- maritime freight transport : at the end of 2023, operated a fleet of over 707 vessels (container vessels, tugs, supply vessels, gas carriers, and other specialized transporters). The group also offers port and logistical services;
- other: primarily activities related to shipyard construction, factory management (plastic and rubber products), and business holdings.
Net sales are distributed geographically as follows: Denmark (1.7%), United States (22.4%), China and Hong Kong (5.5%), Germany (3.3%), the United Kingdom (3.6%), Netherlands (3 .1%), Brazil (2.8%), Mexico (2.7%), India (2.7%), Spain (2.6%), Australia (2.5%), Singapore (1.9%) %), Costa Rica (0.7%) and others (44.5%).